Labour Code on Wages Bill, 2015

 

For the purpose of this document –

PWA means Payment of Wages Act, 1936; PBA means Payment of Bonus Act, 1965; MWA means The Minimum Wages Act, 1948.

 
    

Proposed Draft

Derived

From

Clause as in act

 

2. Definitions

In this code, unless the context otherwise requires:-

   

(a) “accounting year” means the year commencing on the first day of April;

PBA

"accounting year" means--

(i) in relation to a corporation, the year ending on the day on which the books and accounts of the

corporation are to be closed and balanced;

(ii) in relation to a company, the period in respect of which any profit and loss account of the company laid before it in annual general meeting is made up, whether that period is a year or not;

(iii) in any other case--

(a) the year commencing on the 1st day of April; or

(b) if the accounts of an establishment maintained by the employer thereof are closed and balanced on any day other than the 31st day of March, then, at the option of the employer, the year ending on the day on which its accounts are so closed and balanced:

Provided that an option once exercised by the employer under paragraph (b) of this sub-clause shall not again be exercised except with the previous permission in writing of the prescribed authority and upon such conditions as that authority may think fit;

 

(b) “advisory board” means the advisory board constituted under section 17;

 

New insertion

 

(c) “agriculture income tax law” means any law for the time being in force relating to the levy of tax on agricultural income;

PBA

"agricultural  income" shall have the same meaning as in the Income-tax Act;

 

(d) “appropriate government” means –

(i) in relation to an establishment carried on by or under the authority of the Central Government, or a corporation or other authority established by a Central Act or a central public sector undertaking, subsidiary companies set up by the principal undertakings or autonomous bodies owned or controlled by the Central Government including establishments of the contractors for the purposes of such establishment, corporation, other authority, public sector undertakings or the subsidiary companies, as the case may be, the Central Government; and

(ii) in relation to any other establishment, the state Government.

MWA

(b) "appropriate Government" means,--

(i) in relation to any scheduled employment carried on by or under the authority of the [Central Government or a railway administration], or in relation to a mine, oilfield or major port, or any corporation established by [a Central Act], the Central Government, and

 

(ii) in relation to any other scheduled employment, the State Government;

 

(e) “company” means a company incorporated under Companies Act, 2013 or under any previous company law;

PBA

"company" means any  company as defined in section 3 of the Companies  Act, 1956  (1 of  1956),  and includes a foreign company  within the  meaning of  section 591 of that Act;

 

(f) “consumer price index number” means the consumer price index number as notified by the Central Government from time to time;

 

New insertion

 

The PBA considers cost of living index which has been defined in the said act as:

"cost of living index number", in relation to employees in any scheduled employment in respect of which minimum rates of wages have been fixed, means the index number ascertained and declared by the competent authority by notification in the Official Gazette to be the cost of living index number applicable to employees in such employment;

 

(g) “co-operative society” means a society registered or deemed to be registered under the Co-operative Societies Act, 1912 (2 of 1912), or any other law for the time being in force in any State relating to co-operative societies;

PBA

Verbatim

 

(h) “corporation” means any body corporate established by or under any Central, or State Act but does not include a company or a co-operative society;

PBA

Verbatim

 

(i) “direct tax” means,-

(a) any tax chargeable under,-

(i) the Income-tax Act;

(ii) the Super Profits Tax Act, 1963 (14 of 1963);

(iii) the Companies (Profits) Surtax Act, 1964 (7 of 1964);

(iv) the agricultural income tax law; and

(b) any other tax which, having regard to its nature or incidence, may be declared by the Central Government, by notification to be a direct tax for the purposes of this Act;

PBA

Verbatim

 

(j)“employee” means any person (other than an apprentice) employed directly or indirectly on wages  in any establishment to do any skilled, semi-skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied;

PBA

"employee"  means any person (other than an apprentice) employed on a salary or wage not  exceeding [three thousand and  five   hundred  rupees]  per  mensem  in any industry to  do any skilled  or  unskilled  manual, supervisory, managerial,  administrative, technical  or clerical work  for hire  or reward whether the terms of employment be express or implied;

 

(k) “employer” means a person who employs directly or indirectly employees in his establishment and where the establishment is carried on by any department of Central Government or State Government, the authority prescribed in this behalf or where no authority is prescribed the head of the department and in relation to an establishment carried on by a local authority, the Chief Executive of that authority and includes -

(i) in relation to an establishment which is a factory, the occupier of the factory as defined under clause (n) of section 2 of the Factories Act 1948 and, where a person has been named as a manager of the factory under clause (f) of sub-section (1) of section 7 of the Factories Act,1948 (63 of 1948), the person so named; and

(ii) in relation to any other establishment, the person who, or the authority which has ultimate control over the affairs of the establishment and where said affairs are entrusted to a manager or managing director, such manager or managing director;

PBA

Verbatim

 

(l) “establishment” means any place where any industry, trade, business, manufacture or occupation is carried on and includes Government establishment;

PBA

Combines two definitions of the PBA viz.,"establishment in private sector" means any establishment other than an establishment in public sector;

"establishment in public sector" means an establishment owned, controlled or managed by--

(a) a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956);

(b) a corporation in which not less than forty per cent. of its capital is held (whether singly or taken together) by--

(i) the Government; or

(ii) the Reserve Bank of India; or

(iii) a corporation owned by the Government or the Reserve Bank of India;

 

(m)  “Facilitator”  means  the  Facilitator  appointed  by  the  appropriate  government under sub-section (1) of section 49;

 

New insertion

 

(n) “factory” means the factory as defined under clause (m) of section 2 of the Factories Act, 1948 (63 of 1948);

PBA

PWA

Verbatim

 

(o)  “Government  establishment”  means  any  office  or  department  of  the Government a local authority

   

(p) “Income Tax Act” means the Income Tax Act, 1961 (43 of 1961);

PBA

Verbatim

 

(q) “industrial dispute” means a dispute or difference as defined under clause (k) of Section 2 of the Industrial Disputes Act, 1947 (4 of 1947);

   

(r) “Labour Court” means a Labour Court constituted under Section 7 of the Industrial Disputes Act, 1947 (4 of 1947);

   

(s) “list of defaulters” means a list of such employers who have contravened any of the provisions of this Code maintained by the appropriate Government in the prescribed manner and such list shall be revised from time to time in the prescribed manner and the names of such employers, who after having contravened any of the provisions of this Code have not further contravened any if the provisions of this Code till five years from such contravention, shall be removed from such list;

 

New insertion

 

(t) “minimum wage” means the wage fixed under section 6;

 

New insertion

 

(u)  “National  Tribunal”  means  a  National  Industrial  Tribunal  constituted  under Section 7B of the Industrial Disputes Act, 1947 (4 of 1947);

   

(v) “notification” means a notification published in the Gazette of India or the Official Gazette of a State,   as the case may be, and the expression “notify” with its grammatical variations and cognate expressions shall be construed accordingly;

 

New insertion

 

(w) “prescribed” means prescribed by rules made by the Central Government or State Government;

 

New insertion

 

(x) “same work or work of a similar nature” means work in respect of which the skill, effort  and  responsibility  required  are  the  same, when  performed  under  similar working conditions by a man or a woman or a transgender and the difference if any, between the skill, effort and responsibility required of a man and those required of a woman are not of practical importance in relation to the terms and conditions of employment;

 

New insertion

 

(y) “state” includes union territory;

 

New insertion

 

(z) “wages” means all remuneration (whether by way of salary, allowances or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes: –

(a) any remuneration payable under any award or settlement between the parties or order of a court;

(b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period;

(c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name);

(d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;

(e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force;

but does not include-

(1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a Court;

(2) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the State Government;

(3) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;

(4) any travelling allowance or the value of any travelling concession;

(5) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or

(6) any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d).

PWA

Verbatim

 

Note: The words used in this Code but not defined shall have the meaning as assigned to them in the Industrial Disputes Act, 1947 (14 of 1947)

 
    

3. Prohibition of discrimination on ground of gender- (1) There shall be no discrimination among male, female and transgender employees on the ground of sex in the matter of wages; under the same employer, in respect of work of same or similar nature.

 

New insertion

 

(2) No employer shall, for the purpose of complying with the provisions of sub- section (1), reduce the rate of wages of any employee.

 

New insertion

 

4. Determination of the disputes with regard to same or similar nature of work: Where there is any dispute as to whether a work is of same or similar nature for the purpose of section 3, the dispute shall be decided by the authority notified by the appropriate government.

 

New insertion

 
    

Chapter II

Minimum Wages

 

5. Payment of minimum wages:No employer shall be allowed to pay to any employee wages less than the minimum rates of wages notified by the State Government for the territorial limit of the State or any part thereof.

MWA

Payment of minimum rates of wages.- (1) Where in respect of any scheduled employment a notification under section 5 is in force, the employer shall pay to every employee engaged in a scheduled employment under him wages at a rate not less than the minimum rate of wages fixed by such notification for that class of employees in that employment without any deductions except as may be authorized within such time and subject to such conditions as may be prescribed.

(2) Nothing contained in this section shall affect the provisions of the Payment of Wages Act, 1936 (4 of 1936).

 

6. Fixation of minimum wages:(1) The State Government shall fix the minimum rates of wages payable to employees employed in an employment.

(2) For the purposes of sub-section (1), the State Government shall fix – (a) a minimum rate of wages for time work; or

(b) a minimum rates of wages for piece work; or

(c) a minimum rate of remuneration to apply in the case of employees employed on piece work for the purpose of securing to such employees a minimum rate of wages on a time work basis;

and such rate of wages may be fixed for a period determined -

(i) by the hour; or

(ii) by the day; or

(iii) by the month;

and where such rates are fixed by the hour or by the day or by the month, the manner of calculating the wages, as the case may be, shall be as may be prescribed.

(3) The State Government may revise from time to time the minimum rate of wages or remuneration fixed under sub-section (2).

(4)The State Government, in fixing or revising the minimum rates of the wages under foregoing sub-sections, shall take into account the skill required, the arduousness of the work assigned to the worker, the cost of living of the worker, geographical location of the place of work and other factors which the State Government considers appropriate:

Provided that while fixing or revising such minimum wage the State Government shall take into consideration any guidelines made by the Minimum Wages Advisory Board constituted by the Central Government under sub-section (3) of section 15 and shall abide by such guidelines.

(5) Where in respect of an industrial dispute relating to the rates of wages payable to any employee, any proceeding is pending before a Tribunal or National Tribunal under the Industrial Disputes Act, 1947 (14 of 1947) or before any other authority under any other law for the time being in force, or an award made by any Tribunal, National Tribunal or such authority is in operation, and a notification fixing or revising the minimum rates of wages in respect of employment is issued during the pendency of such proceeding or the operation of the award, then, notwithstanding anything contained in this Act, the minimum rates of wages so fixed or so revised shall apply to those employees during the period in which the proceeding is pending and the award made therein is in operation or, as the case may be, where the notification is issued during the period of operation of an award, during that period; and where such proceeding or award relates to the rates of wages payable to all the employees in the employment, no minimum rates of wages shall be fixed or revised in respect of that employment during the said period.

MWA

3. Fixing of minimum rates of wages.- (1) The appropriate Government shall, in the manner hereinafter provided,--

(a) fix the minimum rates of wages payable to employees employed in an employment specified in Part I or Part II of the Schedule and in an employment added to either Part by notification under section 27:

Provided that the appropriate Government may, in respect of employees employed in an employment specified in Part II of the Schedule, instead of fixing minimum rates of wages under this clause for the whole State, fix such rates for a part of the State or for any specified class or classes of such employment in the whole State or part thereof;]

(b) review at such intervals as it may think fit, such intervals not exceeding five years, the minimum rates of wages so fixed and revise the minimum rates, if necessary:

3*[Provided that where for any reason the appropriate Government has not reviewed the minimum rates of wages fixed by it in respect of any scheduled employment within any interval of five years, nothing contained in this clause shall be deemed to prevent it from reviewing the minimum rates after the expiry of the said period of five years and revising them, if necessary, and until they are so revised the minimum rates in force immediately before the expiry of the said period of five years shall continue in force.]

(1A) Notwithstanding anything contained in sub-section (1), the appropriate Government may refrain from fixing minimum rates of wages in respect of any scheduled employment in which there are in the whole State less than one thousand employees engaged in such employment, but if at any time, the appropriate Government comes to a finding after such inquiry as it may make or cause to be made in this behalf

that the number of employees in any scheduled employment in respect of which it has refrained from fixing minimum rates of wages has risen to one thousand or more, it shall fix minimum rates of wages payable to employees in such employment 5*[as soon as may be after such finding].]

(2) The appropriate Government may fix,--

(a) a minimum rate of wages for time work (hereinafter referred to as "a minimum time rate");

(b) a minimum rate of wages for piece work (hereinafter referred to as "a minimum piece rate");

(c) a minimum rate of remuneration to apply in the case of employees employed on piece work for the purpose of securing to such employees a minimum rate of wages on a time work basis (hereinafter referred to as "a guaranteed time rate");

(d) a minimum rate (whether a time rate or a piece rate) to apply in substitution for the minimum rate which would otherwise be applicable, in respect of overtime work done by employees (hereinafter referred to as "overtime rate").

(2A) Where in respect of an industrial dispute relating to the rates of wages payable to any of the employees employed in a scheduled employment, any proceeding is pending before a Tribunal or National Tribunal under the Industrial Disputes Act, 1947 (14 of 1947.) or before any like authority under any other law for the time being in force, or an award made by any Tribunal, National Tribunal or such authority is in operation, and a notification fixing or revising the minimum rates of wages in respect of the scheduled employment is issued during the pendency of such proceeding or the operation of the award, then, notwithstanding anything contained in this Act, the minimum rates of wages so fixed or so revised shall not apply to those employees during the period in which the proceeding is pending and the award made therein is in operation or, as the case may be, where the notification is issued during the period of operation of an award, during that period; and where such proceeding or award relates to the rates of wages payable to all the employees in the scheduled employment, no minimum rates of wages shall be fixed or revised in respect of that employment during the said period.]

(3) In fixing or revising minimum rates of wages under this section,--

(a) different minimum rates of wages may be fixed for-- (i) different scheduled employments;

(ii) different classes of work in the same scheduled employment;

(iii) adults, adolescents, children and apprentices;

(iv) different localities;

(b) minimum rates of wages may be fixed by any one or more of the following wage periods, namely:--

(i) by the hour,

(ii) by the day,

(iii) by the month, or

(iv) by such other larger wage-period as may be prescribed;

and where such rates are fixed by the day or by the month, the manner of calculating wages for a month or for a day, as the case may be, may be indicated.

 

7. Components of Minimum Wages:(1) Any minimum rate of wages fixed or revised by the State government in respect of employments under section 8 may consist of –

(i) a basic rate of wages and a special allowance at a rate to be adjusted at such intervals and in such manner as the State government may direct to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers; or

(ii) a basic rate of wages with or without the cost of living allowance and the cash value of the concessions in respect of suppliers of essential commodities at concession rates where so authorized; or

(iii) an all-inclusive rate allowing for the basic rate the cost of living allowance and the cash value of the concessions if any.

(2) The cost of living allowance and the cash value of the concessions in respect of supplied of essential commodities at concession rate shall be computed by the competent authority at such intervals and in accordance with such directions as may be specified or given by the State government from time to time.

MWA

Verbatim

 

8. Procedure for fixation and revision minimum wages:(1) In fixing minimum rates of wages in respect of any employment for the first time under this code or in revising minimum rates of wages so fixed, the State government shall –

(a) appoint as many committee and sub-committee as it considers necessary to hold enquiries and advise such Government in respect of such fixation or revision as the case may be or

(b) by notification publish its proposals for the information of persons likely to be affected thereby and specify a date not less than two months from the date of the notification on which the proposals shall be taken into consideration.

(2) After considering the advice of the committee or sub- committee appointed under clause (a) of sub-section (1) or, as the case may be, all representations received by it before the date specified in the notification under clause (b) of that sub-section, the State Government shall by notification fix or as the case may be, revise the minimum rates of wages and unless such notification otherwise provides it shall come into force on the expiry of three months from the date of its issue:

Provided that where the State Government proposes to revise the minimum rates of wages by the mode specified in clause (b) of sub-section (1) the State government shall consult the Minimum Wage Advisory Board also.

(3)The State Government shall review or revise minimum rates of wages at intervals not exceeding 5 years, if the minimum rates of wages have a component of variable Dearness Allowance worked out on the basis of rise in Consumer Price Index Numbers for Industrial Workers; otherwise such review or revision shall be made at the interval of two years.

MWA

Verbatim

 

9. Correction of errors:(1) The State Government may, at any time, by notification, correct clerical or arithmetical mistakes in any order fixing or revising minimum rates of wages under this Code, or errors arising therein from any accidental slip or omission.

(2) Every such notification shall as soon as may be after it is issued, be placed before the Minimum Wage Advisory Board for information.

MWA

Verbatim

 

10. Wages of worker who works for less than normal working day:If an employee whose minimum rate of wages has been fixed under this Code by the day works on any day on which he was employed for a period less than the requisite number of hours constituting a normal working day he shall save as otherwise hereinafter provided, be entitled to receive wages in respect of work done by him on that day as if he had worked for a full normal working day:

Provided that he shall not be entitled to receive wages for a full normal working day- (i) in any case where his failure to work is caused by his unwillingness to work and not by the omission of the employer to provide him with work; and

(ii) in such other cases and circumstances as may be prescribed.

MWA

Verbatim

 

11. Wages for two or more classes of work:Where an employee does two or more classes of work to each of which a different minimum rate of wages is applicable, the employer shall pay to such employee in respect of the time respectively occupied in each such class of work wages at not less than the minimum rate in force in respect of each such class.

MWA

Verbatim

 

12. Minimum time rate wages for piece work:Where an employee is employed on piece work for which minimum time rate and not a minimum piece rate has been fixed under this Code the employer shall pay to such employee wages at not less than the minimum time rate.

MWA

Verbatim

 

13. Fixing hours of work for normal working day:(1) In regard to any employment in respect of which the minimum rates of wages have been fixed under this Code, the State Government may–

(a) fix the number of hours of work which shall constitute a normal working day inclusive of one or more specified intervals;

(b) provide for a day of rest in every period of seven days which shall be allowed to all employees or to any specified class of employees and for the payment of remuneration in respect of such days of rest;

(c) provide for payment for work on a day of rest at a rate not less than the overtime rate.

(2) The provisions of sub-section (1) shall in relation to the following classes of employees apply only to such extent and subject to such conditions as may be prescribed, namely:-

(a) employees engaged on urgent work or in any emergency which could not have been foreseen or prevented;

(b) employees engaged in work of the nature of preparatory or complementary

work which must necessarily be carried on outside the limits laid down for the general working in the employment concerned;

(c) employees whose employment is essentially intermittent;

(d) employees engaged in any work which for technical reasons has to be completed before the duty is over; and

(e) employees engaged in a work which could not be carried on except at times dependent on the irregular action of natural forces.

(3) For the purposes of clause (c) of sub-section (2), employment of an employee is essentially intermittent when it is declared to be so by the appropriate Government on the ground that the daily hours of duty of the employee or if there be no daily hours of duty as such for the employee the hours of duty normally include periods of inaction during which the employee may be on duty but is not called upon to display either physical activity or sustained attention.

MWA

Verbatim

 

14. Wages for the overtime work:Where an employee whose minimum rate of wages has been fixed under this Code by the hour, by the day or by such a longer wage-period as may be prescribed, then, for works on any day in excess of the number of hours constituting a normal working day, the employer shall pay him for every hour or for part of an hour so worked in excess at the overtime rate which shall not be less than twice the normal rate of wages fixed under this Code.

MWA

Overtime.- (1) Where an employee, whose minimum rate of wages is fixed under this Act by the hour, by the day or by such a longer wage-period as may be prescribed, works on any day in excess of the number of hours constituting a normal working day, the employer shall pay him for every hour or for part of an hour so worked in excess at the overtime rate fixed under this Act or under any law of the appropriate Government for the time being in force, whichever is higher.

 

(2) Nothing in this Act shall prejudice the operation of the provisions of [section 59 of the Factories Act, 1948 (63 of 1948) ] in any case where those provisions are applicable.

 

15. Minimum Wages Advisory Board:(1) The State Government shall constitute the Minimum Wages Advisory Board for advising the State Government in fixation or revision of minimum wages and other connected matters and the Board may constitute one or more committees to look into any matter pertaining to minimum wages and the wages may be determined by notification on the advice of the Board or the committee or thereof constituted for such purpose.

(2) The Advisory Board and each of the committees and sub- committees thereof shall consist of persons to be nominated by the State Government representing employers and employees in the employments, who shall be equal in number, and independent persons not exceeding one-third of its total number of members; one of such independent persons shall be appointed the Chairman of the Board by the State Government:

Provided that all the employments need not be individually represented in the

Advisory Boards or Committees or Sub-Committees.

(3) The Central Government shall constitute Minimum Wages Advisory Board which shall consist of a Chairman and such number of members as may be prescribed.

(4) The Minimum Wages Advisory Board constituted under sub-section (3) shall from time to time advise the Central Government on reference of issues to it relating to minimum wages and on such advice the Central Government may issue directions to the State Government as it deems fit in respect of fixation or revision of minimum wages or matters relating thereto.

MWA

7. Advisory Board.- For the purpose of co-ordinating the work of

[committees and sub-committees appointed under section 5] and

advising the appropriate Government generally in the matter of fixing

and revising minimum rates of wages, the appropriate Government shall appoint an Advisory Board.

8. Central Advisory Board.- (1) For the purpose of advising the Central and State Governments in the matters of the fixation and revision of minimum rates of wages and other matters under this Act and for co-ordinating the work of the Advisory Boards, the Central Government shall appoint a Central Advisory Board.

 

(2) The Central Advisory Board shall consist of persons to be nominated by the Central Government representing employers and employees in the scheduled employments, who shall be equal in number, and independent persons not exceeding one-third of its total number of members; one of such independent persons shall be appointed the Chairman of the Board by the Central Government.

 

9. Composition of committees, etc.- Each of the committees, sub- committees and the Advisory Board shall consist of persons to be nominated by the appropriate Government representing employers and employees in the scheduled employments, who shall be equal in number, and independent persons not exceeding one-third of its total number of members; one of such independent persons shall be appointed the Chairman by the appropriate Government.

 

Chapter III

Payment of Wages

 

16. Mode of payment of wages:All wages to employees shall be paid by depositing the same in the bank account of the employees, electronically or by cheque:

Provided that payment of wages to the employees up to such amount as may be notified by the appropriate Government in a month may be made by cash.

 

Wages to be paid in current coin or currency notes.- All wages shall be paid in current coin or currency notes or in both:

Provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.

 

17. Fixation of wage period:The employer shall fix the wage period for employees either as daily, or weekly or fortnightly or monthly subject to the condition that no wage period in respect of any employee shall be more than a month:

Provided that different wage periods may be fixed for different employments.

   

18. Time limit for payment of wages:(1) The employer shall pay or cause to be paid wages to the employees, engaged on, -

(i) monthly basis, before the 7th day of the succeeding month.

(ii) daily basis, at the end of the shift.

(iii) weekly basis, on the last working day of the week, that is to say before the weekly holiday;

(iv) fortnightly basis, before end of second day after the end of the fortnight. (2) Where an employee has been –

(i) removed or dismissed from service; or

(ii) retrenched or has resigned from service, or became unemployed due to closure of the establishment, the wages payable to him shall be paid within 48 hours of his removal, dismissal, retrenchment or, as the case may be, his resignation.

(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the appropriate Government may provide any other time limit for payment of wages where it considers reasonable having regard to the circumstances under which the wages are to be paid.

(4) Nothing contained in sub-section (1) or sub-section (2) shall affect any time limit of payment of wages provided in any other law for the time being in force.

(5) Notwithstanding anything contained in this section, the provisions of this section shall not apply to the Government establishment except where the appropriate Government applies, by notification, such provisions to the Government establishments specified in such notification.

PWA

The wages of every person employed upon or in--

(a) any railway, factory or [industrial or other establishment] upon or in which less than one thousand persons are employed, shall be paid before the expiry of the seventh day,

(b) any other railway, factory or [industrial or other establishment], shall be paid before the expiry of the tenth day,after the last day of the wage-period in respect of which the wages are payable:

 

Provided that in the case of persons employed on a dock, wharf or jetty or in a mine, the balance of wages found due on completion of the final tonnage account of the ship or wagons loaded or unloaded, as the case may be, shall be paid before the expiry of the seventh day from the day of such completion.

 

(2) Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated:

 

Provided that where the employment of any person in an establishment is terminated due to the closure of the establishment for any reason other than a weekly or other recognised holiday, the wages earned by him shall be paid before the expiry of the second day from the day on which his employment is so terminated.

 

(3) The State Government may, by general or special order, exempt, to such extent and subject to such conditions as may be specified in the order, the person responsible for the payment of wages to persons employed upon any railway (otherwise than in a factory) [or to persons employed as daily-rated workers in the Public Works Department of the Central Government or the State Government] from the operation of this section in respect of the wages of any such persons or class of such persons:

Provided that in the case of persons employed as daily-rated workers as aforesaid, no such order shall be made except in consultation with the Central Government.]

(4) Save as otherwise provided in sub-section (2), all payments of wages shall be made on a working day.

 

19. Deductions which may be made from wages:(1) Notwithstanding anything contained in any other law for the time being enforce, there shall be no deductions from the wages of the employee, except those as are specified under this Section.

(2) The wages of an employee shall be paid to the employee without deductions of any kind except those authorised by or under this Code.

Explanation: For the purposes of this sub-section,-

(I) any payment made by an employee to the employer or his agent shall be deemed to be a deduction from his wages;

(II) – any loss of wages to an employee, for a good and sufficient cause, resulting

From-

(a) the withholding of increment or promotion, including the stoppage of an increment; or

(b) the reduction to a lower post or time-scale

shall not be deemed to be a deduction from wages in a case where the provisions made by the employer for such purposes are satisfying the requirements specified by notification, by the appropriate government in this behalf.

(3) Deductions from the wages of an employee shall be made only in accordance with the provisions as may be prescribed, and for the following purposes only, namely: -

(a) fines imposed on him;

(b) deductions for his absence from duty;

(c) deductions for damage to or loss of goods expressly entrusted to the employee for custody; or for loss of money for which he is required to account, where such damage or loss is directly attributable to his neglect or default;

(d) deductions for house-accommodation supplied by the employer or by appropriate Government or any housing board set up under any law for the time being in force (whether the Government or the board is the employer or not) or any other authority engaged in the business of subsiding house- accommodation which may be specified in this behalf by the appropriate Government by notification;

(e) deductions for such amenities and services supplied by the employer as the appropriate Government or any officer specified by it in this behalf may by general or special order, authorise.

Explanation- For the purposes of this clause the expression ‘services’ does not include the supply of tools and raw materials required for the purposes of employment;

(f) deductions for recovery of loans and advances by the employer from the funds of the establishment or from any statutory Welfare Fund;

(g) deductions of income tax payable by the employee or any other tax levied by the Central or State Government or deductions required to be made by order of a court or other authority competent to make such order;

(h) deductions for subscription to, and for repayment of advances from any social security fund or scheme constituted by law including provident fund or pension fund or health insurance scheme or fund known by any other name;

(i) deductions made, with the written authorisation of the employees, for payment of the fees payable by him for the membership of any trade union registered under the Trade Union Act, 1926 (16 of 1926);

(j) deductions for recovery of losses sustained by an employer on account of acceptance by the employee of counterfeit or base coins or mutilated or forged currency notes;

(k) deductions for recovery of losses sustained by an employer on account of the failure of the employee to invoice, to bill, to collect or to account for the appropriate charges due to that administration whether in respect of fares, freight, demurrage, wharfage and carnage or in respect of sale of food in

catering establishments or in respect of commodities in grain shops or otherwise;

(l) deductions for recovery of losses sustained by an employer on account of any rebates or refunds incorrectly granted by the employee where such loss is directly attributable to his neglect or default;

(m)deductions, made with the written authorisation of the employee, for contribution to the Prime Minister’s National Relief Fund or to such other fund as the Central Government may, by notification specify;

(4) Notwithstanding anything contained in this Code and subject to the provisions of any other law for the time being in force, the total amount of deductions which may be made under sub-section (3) in any wage-period from the wages of an employee shall not exceed fifty per cent of such wages:

Provided that where the total deductions authorised under sub-section (3) exceed fifty percent of the wages, the excess may be recovered in such manner as may be prescribed.

PWA

7. Deductions which may be made from wages.-(1) Notwithstanding the provisions of sub-section (2) of section 47 of the Indian Railways Act, 1890 (9 of 1890), the wages of an employed person shall be paid to him without deductions of any kind except those authorised by or under this Act.

 

[Explanation I].--Every payment made by the employed person to the employer or his agent shall, for the purposes of this Act, be deemed to be a deduction from wages.

 

[Explanation II].--Any loss of wages resulting from the imposition, for good and sufficient cause, upon a person employed of any of the following penalties, namely:--

(i) the withholding of increment or promotion (including the stoppage of increment at an efficiency bar);

(ii) the reduction to a lower post or time scale or to a lower stage in a time scale; or

(iii) suspension;

 

shall not be deemed to be a deduction from wages in any case where the rules framed by the employer for the imposition of any such penalty are in conformity with the requirements, if any, which may be specified in this behalf by the State Government by notification in the Official Gazette.]

 

(2) Deductions from the wages of an employed person shall be made only in accordance with the provisions of this Act, and may be of the following kinds only, namely:--

 

(a) fines;

(b) deductions for absence from duty;

(c) deductions for damage to or loss of goods expressly entrusted to the employed person for custody, or for loss of money for which he is required to account, where such damage or loss is directly attributable to his neglect or default;

(d) deductions for house-accommodation supplied by the employer or by Government or any housing board set up under any law for the time being in force (whether the Government or the board is the employer or not) or any other authority engaged in the business of subsidising house-accommodation which may be specified in this behalf by the State Government by notification in the Official Gazette;]

(e) deductions for such amenities and services supplied by the employer as the State Government [or any officer specified by it in this behalf] may, by general or special order, authorise.

Explanation.--The word "services" in this clause does not include the supply of tools and raw materials required for the purposes of employment;

(f) deductions for recovery of advances of whatever nature (including advances for travelling allowance or conveyance allowance), and the interest due in respect thereof, or for adjustment of over-payments of wages;

(ff) deductions for recovery of loans made from any fund constituted for the welfare of labour in accordance with the rules approved by the State Government, and the interest due in respect thereof;

(fff) deductions for recovery of loans granted for house- building or other purposes approved by the State Government, and the interest due in respect thereof;]

(g) deductions of income-tax payable by the employed person; (h) deductions required to be made by order of a Court or

other authority competent to make such order;

 

(i) deductions for subscriptions to, and for repayment of advances from any provident fund to which the Provident Funds Act, 1925 (19 of 1925), applies or any recognised provident fund as defined in section 58A of the Indian Income-tax Act, 1922 (11 of 1922), or any provident fund approved in this behalf by the State Government, during the continuance of such approval;

 

(j) deductions for payments to co-operative societies approved by the State Government [or any officer specified by it in this behalf] or to a scheme of insurance maintained by the Indian Post Office; 6*[and]

 

(k) deductions, made with the written authorisation of the person employed for payment of any premium on his life insurance policy to the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), or for the purchase of securities of the Government of India or of any State Government or for being

deposited in any Post Office Savings Bank in furtherance of any savings scheme of any such Government.]]

 

(kk) deductions made, with the written authorisation of the employed person, for the payment of his contribution to any fund constituted by the employer or a trade union registered under the Trade Unions Act, 1926 for the welfare of the employed persons or the members of their families, or both, and approved by the State Government or any officer specified by it in this behalf, during the continuance of such approval;

 

(kkk) deductions made, with the written authorisation of the employed person, for payment of the fees payable by him for the membership of any trade union registered under the Trade Unions Act,

1926;]

 

(l) deductions for payment of insurance premia on Fidelity Guarantee Bonds;

 

(m) deductions for recovery of losses sustained by a railway administration on account of acceptance by the employed person of counterfeit or base coins or mutilated or forged currency notes;

 

(n) deductions for recovery of losses sustained by a railway administration on account of the failure of the employed person to invoice, to bill, to collect or to account for the appropriate charges due to that administration; whether in respect of fares, freight, demurrage, wharfage and cranage or in respect of sale of food in catering establishments or in respect of sale of commodities in grain shops or otherwise;

 

(o) deductions for recovery of losses sustained by a railway administration on account of any rebates or refunds incorrectly granted by the employed person where such loss is directly attributable to his neglect or default;]

 

(p) deductions, made with the written authorisation of the employed person, for contribution to the Prime Minister's National Relief Fund or to such other Fund as the Central Government may, by notification in the Official Gazette, specify;]

 

(q) deductions for contributions to any insurance scheme framed by the Central Government for the benefit of its employees.]

 

(3) Notwithstanding anything contained in this Act, the total amount of deductions which may be made under sub-section (2) in any wage period from the wages of any employed person shall not exceed--

 

(i) in cases where such deductions are wholly or partly made for payments to co-operative societies under clause (j) of sub-section (2), seventy-five per cent. of such wages, and

(ii) in any other case, fifty per cent. of such wages: Provided that where the total deductions authorised under sub-section (2) exceed seventy-five per cent, or, as the case may be,

fifty per cent. of the wages, the excess may be recovered in such manner as may be prescribed.

 

(4) Nothing contained in this section shall be construed as precluding the employer from recovering from the wages of the employed person or otherwise any amount payable by such person under any law for the time being in force other than the Indian Railways Act, 1890 (9 of 1890).]

 

20. Fines:(1) No fine shall be imposed on any employed person save in respect of such acts and omissions on his part as the employer with the previous approval of the Appropriate Government or of the prescribed authority may have specified by notice under sub-section (2).

(2) A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the employment is carried on.

(3) No fine shall be imposed on any employed person until the employee has been given an opportunity of showing cause against the fine or otherwise than in accordance with such procedure as may be prescribed for the imposition of fines.

(4) The total amount of fine which may be imposed in any one wage-period on any employed person shall not exceed an amount equal to three per cent of the wages payable to him in respect of that wage-period.

(5) No fine shall be imposed on any employed person who is under the age of eighteen years.

(6) No fine imposed on any employed person shall be recovered from him by instalments or after the expiry of sixty days from the day on which it was imposed.

(7) Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed.

(8) All fines and all realisations thereof shall be recorded in a register to be kept in such form as may be prescribed; and all such realisations shall be applied only to such purposes beneficial to the persons employed in the establishment as are approved by the prescribed authority.

PWA

Fines. (1) No fine shall be imposed on any employed person save in respect of such acts and omissions on his part as the employer, with the previous approval of the State Government or of the prescribed authority, may have specified by notice under sub-section (2).

 

(2) A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the employment is carried on or in the case of person employed upon a railway (otherwise than in a factory), at the prescribed place or places.

 

(3) No fine shall be imposed on any employed person until he has been given an opportunity of showing cause against the fine, or otherwise than in accordance with such procedure as may be prescribed for the imposition of fines.

 

(4) The total amount of fine which may be imposed in any one wage-period on any employed person shall not exceed an amount equal to [three per cent.] of the wages payable to him in respect of that wage-period.

 

(5) No fine shall be imposed on any employed person who is under the age of fifteen years.

 

(6) No fine imposed on any employed person shall be recovered from him by instalments or after the expiry of sixty days from the day on which it was imposed.

 

(7) Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed.

 

(8) All fines and all realisations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages

under section 3 in such form as may be prescribed; and all such realisations shall be applied only to such purposes beneficial to the persons employed in the factory or establishment as are approved by the prescribed authority.

 

Explanation.--When the persons employed upon or in any railway, factory or 1*[industrial or other establishement] are part only of a staff employed

 

21. Deductions for absence from duty:(1) Deductions may be made only on account of the absence of an employed person from the place or places where by the terms of his employment, he is required to work such absence being for the whole or any part of the period during which he is so required to work.

(2) The amount of such deduction shall in no case bear to the wages payable to the employed person in respect of the wage-period for which the deduction is made in a larger proportion than the period for which he was absent bears to the total period within such wage-period during which by the terms of his employments he was required to work:

Provided that subject to any rules made in this behalf by the appropriate Government if ten or more employed persons acting in concert absent themselves without due notice (that is to say without giving the notice which is required under the terms of their contracts of employment) and without reasonable cause such deduction from any such person may include such amount not exceeding his wages for eight days as may by any such terms be due to the employer in lieu of due notice.

Explanation: For the purposes of this section an employed person shall be deemed to be absent from the place where he is required to work if although present in such place he refuses in pursuance of a stay-in strike or for any other cause which is not reasonable in the circumstances to carry out his work.

PWA

Verbatim

 

22. Deductions for damage or loss:(1) A deduction for damage or loss shall not exceed the amount of the damage or loss caused to the employer by the neglect or default of the employed person.

(2) A deduction shall not be made under sub-section (1) until the employed person has been given an opportunity of showing cause against the deduction or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions.

(3) All such deductions and all realisations thereof shall be recorded in a register to be kept in such form as may be prescribed.

PWA

Verbatim

 

23. Deductions for services rendered:A deduction for services rendered shall not be made from the wages of an employed person, unless the house-accommodation amenity or service has been accepted by him as a term of employment or otherwise and such deduction shall not exceed an amount equivalent to the value of the house-accommodation amenity or service supplied and in the case of deduction shall be subject to such conditions as the Appropriate Government may impose.

PWA

Verbatim

 

24. Deductions for recovery of advances:Deductions for recovery of advances given to an employee shall be subject to the following conditions namely:-

(a) recovery of an advance of money given to an employee before employment began shall be made from the first payment of wages to him in respect of a complete wage-period but no recovery shall be made of such advances given for travelling-expenses;

(b) recovery of an advance of money given to an employee after employment began shall be subject to such conditions as the Appropriate Government may impose;

(c) recovery of advances of wages to an employee not already earned shall be subject to such conditions as the Appropriate Government may impose.

PWA

Verbatim

 

25. Deductions for recovery of loans:Deductions for recovery of loans granted to an employee shall be subject to any rules made by the Appropriate Government regulating the extent to which such loans may be granted and the rate of interest payable thereon.

PWA

Verbatim

 

Chapter IV

Payment of Bonus

 

26. Eligibility for bonus:(1) There shall be paid to every employee drawing wages less than the amount as notified by the Central Government for this purpose, by his employer, who has put in at least 30 days work in an accounting year, an annual minimum bonus calculated at the rate of 8 and 1/3% of the wages earned by the employee or the amount notified by the Central Government from time to time whichever is higher whether or not the employer has any allocable surplus during the previous accounting year.

(2) For the purpose of calculation of the bonus the wages of the employee or the amount for this purpose as notified by the central government whichever is minimum shall be taken.

(3) Where in respect of any accounting year, the allocable surplus exceeds the amount of minimum bonus payable to the employees, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wages earned by the employee during the accounting year subject to a maximum of twenty per cent of such salary or wage.

(4) In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section 37 shall be taken into account in accordance with the provisions of that section.

(5) Any demand for bonus in excess of the bonus referred to in sub-section (1), either on the basis of production or productivity in an accounting year to a calendar year for which the bonus is payable shall be determined by collective bargaining between the employer and the employees, failing which by arbitration or adjudication as an industrial dispute subject to the condition that the total bonus including the annual minimum bonus referred to in sub-section (1) shall not exceed 20% of the wages earned by the employee in the accounting year.

(6) In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this code in relation to that year, but without applying the provisions of section 35.

(7) For the sixth and seventh accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of section 35 shall apply subject to the following modifications, namely,-

(i) for the sixth accounting year,-

set on or set off, as the case may be, shall be made in the manner illustrated in the Fourth Schedule taking into account the excess or deficiency, if any as the case may be, of the allocable surplus set on or set off in respect of the fifth and sixth accounting years;

(ii) for the seventh accounting year,-

set on or set off, as the case may be, shall be made in the manner illustrated in the Third Schedule taking into account the excess or deficiency, if any as the case may be, of the allocable surplus set on or set off in respect of the fifth, sixth and seventh accounting years.

(8) From the eighth accounting year following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of section 35 shall apply in relation to such establishment as they apply in relation to any other establishment.

Explanation I : For the purpose of sub-section (6), an employer shall not be deemed to have derived profit in any accounting year unless,-

(a) he has made provision for that year's depreciation to which he is entitled under the Income Tax Act or, as the case may be., under the agricultural income tax law, and

(b) the arrears of such depreciation and losses incurred by him in respect of the establishment for the previous accounting years have been fully set off against his profits.

Explanation II: For the purposes of sub-section (6), (7) and (8), sale of the goods produced or manufactured during the course of the trial running of any factory or of the prospecting stage of any mine or an oil-field shall not be taken into consideration and where any question arises with regard to such production or manufacture, the decision of the appropriate government made after giving the parties a reasonable opportunity of representing the case, shall be final and shall not be called in question by any court or other authority.

(2) The provisions of 19 sub-sections (6), (7) and (8) shall, so far as may be, apply to new departments or undertakings or branches set up by existing establishments.

PBA

(8) Eligibility for bonus.- Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.

(10) Payment of minimum bonus.- Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 per cent. of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:

Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effect in relation to such employee as if for the words "one hundred rupees", the words "sixty rupees" were substituted.

11. Payment of maximum bonus.- (1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent. of such salary or wage.

(2) In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section 15 shall be taken into account in accordance with the provisions of that section.

16. Special provisions with respect to certain establishments.-

(1) Where an establishment is newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to be paid bonus under this Act in accordance with the provisions of sub-sections (1A), (1B) and (1C).

(1A) In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this Act in relation to that year, but without applying the provisions of section 15.

(1B) For the sixth and seventh accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of section 15 shall apply subject to the following modifications, namely:--

(i) for the sixth accounting year--

set on or set off, as the case may be, shall be made in the manner illustrated in the [Fourth Schedule] taking into account the excess or defic- ency, if any, as the case may be, of the allocable surplus set on or set off in res- pect of the fifth and sixth accounting years;

(ii) for the seventh accounting year--

set on or set off, as the case may be, shall be made in the manner illustrated in the [Fourth Schedule] taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth, sixth and seventh accounting years.

(1C) From the eighth accounting year following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of section 15 shall apply in relation to such establishment as they apply in relation to any other establishment.

Explanation I.--For the purpose of sub-section (1), an establishment shall not be deemed to be newly set up merely by reason of a change in its location, management, name or ownership.

Explanation II.--For the purpose of sub-section (1A), an employer shall not be deemed to have derived profit in any accounting year unless--

(a) he has made provision for that year's depreciation to which he is entitled under the Income-tax Act or, as the case may be, under the agricultural income-tax law; and

(b) the arrears of such depreciation and losses incurred by him in respect of the establishment for the previous accounting years have been fully set off against his profits.

Explanation III.--For the purposes of sub-section (1A), (1B) and (1C), sale of the goods produced or manufactured during the course of the trial running of any factory or of the prospecting stage of any mine or an oil-field shall not be taken into consideration and where any question arises with regard to such production or manufacture, the decision of the appropriate Government, made after giving the parties a reasonable opportunity of representing the case, shall be final and shall not be called in question by any court or other authority.]

(2) The provisions of [sub-section (1), (1A), (1B) and (1C)] shall, so far as may be, apply to new departments or undertakings or branches set up by existing establishments:

Provided that if an employer in relation to an existing establishment consisting of different departments or undertakings or branches (whether or not in the same industry) set up at different periods has, before the 29th May, 1965, been paying bonus to the employees of all such departments or undertakings or branches irrespective of the date on which such departments or undertakings or branches were set up, on the basis of the consolidated profits computed in respect of all such departments or undertakings or branches, then, such employer shall be liable to pay bonus in accordance with the provisions of this Act to the employees of all such departments or undertakings or branches (whether set up before or after that date) on the basis of the consolidated profits computed as aforesaid.

 

27. Disqualification for bonus:Notwithstanding anything contained in this Code, an employee shall be disqualified from receiving bonus under this Code, if he is dismissed from service for,-

(a) fraud; or

(b) riotous or violent behaviour while on the premises of the establishment; or

(c) theft, misappropriation or sabotage of any property of the establishment; or

PBA

Verbatim

 

(d) Conviction for sexual harassment.

 

New insertion

 

28. Establishments to include departments, undertakings and branches:Where an establishment consists of different departments or undertakings or has branches, whether situated in the same place or in different places, all such departments or undertakings or branches shall be treated as parts of the same establishment for the purpose of computation of bonus under this code:

Provided that where for any accounting year a separate balance-sheet and profit and loss account are prepared and maintained in respect of any such department or undertaking or branch, then, such department or undertaking or branch shall be treated as a separate establishment for the purpose of computation of bonus, under this code for that year, unless such department or undertaking or branch was, immediately before the commencement of that accounting year treated as part of the establishment for the purpose of computation of bonus.

PBA

Verbatim

 

29. Payment of bonus out of allocable surplus:(1) The bonus shall be paid out of the allocable surplus which shall be an amount equal to 60% in case of a banking company and 67% in case of other establishment, of the available surplus and the available surplus shall be the amount calculated in accordance with Section 31.

(2) Audited accounts of companies shall not normally be questioned:

Provided that wherever there is any dispute regarding the quantum of payment of bonus the authority notified by the appropriate Government having jurisdiction may call upon the employer to produce the balance sheet before it, but the authority shall not disclose any information contained in the balance sheet unless agreed to by the employer.

 

New insertion

 

30. Computation of gross profits:The gross profits derived by an employer from an establishment in respect of the accounting year shall,-

(a) in the case of a banking company, be calculated in the manner specified in the First Schedule;

(b) in any other case, be calculated in the manner specified in the Second Schedule.

PBA

Verbatim

 

31. Computation of available surplus:The available surplus in respect of any accounting year shall be the gross profits for that year after deducting therefrom the sums referred to in section 34:

Provided that the available surplus in respect of the accounting year commencing on any day in a year after the commencement of this code and in respect of every subsequent accounting year shall be the aggregate of,-

(a) the gross profits for that accounting year after deducting there from the sums referred to in section 34; and

(b) an amount equal to the difference between,-

(i) the direct tax, calculated in accordance with the provisions of section 36, in respect of an amount equal to the gross profits of the employer for the immediately preceding accounting year; and

(ii) the direct tax, calculated in accordance with provisions of section 36, in respect of an amount equal to the gross profits of the employer for such preceding accounting year after deducting there from the amount of bonus which the employer has paid or is liable to pay to his employees in accordance with the provisions of this Code for that year.

PBA

Verbatim

 

32. Sums deductible from gross profits:The following sums shall be deducted from the gross profits as prior charges, namely:-

(a) any amount by way of depreciation admissible in accordance with the provisions of the sub-section (1) of section 32 of the Income Tax Act or in accordance with the provisions of the agricultural income tax law, for the time being in force as the case may be:

Provided that where an employer has been paying bonus to his employees under a settlement or an award or agreement made before the 29thMay, 1965, and subsisting on that date after deducting from the gross profits notional normal depreciation, then, the amount of depreciation to be deducted under this clause shall, at the option of such employer (such option to be exercised once and within one year from date) continue to be such notional normal depreciation;

(b) any amount by way of development rebate or investment allowance or development allowance which the employer is entitled to deduct from his income under the Income Tax Act;

(c) subject to the provisions of section 35, any direct tax which the employer is liable to pay for the accounting year in respect of his income, profits and gains during that year;

(d) such further sums as are specified in respect of the employer in the Third Schedule.

PBA

Verbatim

 

33. Calculation of direct tax payable by the employer:Any direct tax payable by the employer for any accounting year shall, subject to the following provisions, be calculated at the rates applicable to the income of the employer for that year, namely,-

(a) in calculating such tax no account shall be taken of,-

(i) any loss incurred by the employer in respect of any previous accounting year and carried forward under any law for the time being in force relating to direct taxes;

(ii) any arrears of depreciation which the employer is entitled to add to the amount of the allowance for depreciation for any following accounting year or years under sub-section (2) of section 32 of the Income Tax Act;

(iii) any exemption conferred on the employer under section 84 of the Income Tax Act or of any deduction to which he is entitled under sub-section (1) of section 101 of that Act, as in force immediately before the commencement of the Finance Act, 1965 (10 of 1965);

(b) where the employer is an individual or a Hindu Undivided Family, the tax payable by such employer under the Income Tax Act shall be calculated on the basis that the income derived by him from the establishment is his only income;

(c) where the income of any employer includes any profits and gains derived from the export of any goods or merchandise out of India and any rebate on such income is allowed under any law for the time being in force relating to direct taxes, then, no account shall be taken of such rebate;

(d) no account shall be taken of any rebate other than development rebate or investment allowance or development allowance or credit or relief or deduction (not hereinbefore mentioned in this section) in the payment of any direct tax allowed under any law for the time being in force relating to direct taxes or under the relevant annual Finance Act, for the development of any industry.

 

Verbatim, except drops clause (b) of the act viz.(b) where the employer is a religious or a charitable institution to which the provisions of section 32 do not apply and the whole or any part of its income is exempt from tax under the Income-tax Act, then, with respect to the income so exempted, such institution shall be treated as if it were a company in which the public are substantially interested within the meaning of that Act;

 

34. Set on and set off of allocable surplus:(1) Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employee in the establishment under section 27, then, the excess shall, subject to a limit of twenty percent of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding accounting year and so on up to and inclusive of the fourth accounting year to be utilised for the purpose of payment of bonus in the manner illustrated in the Third Schedule.

(2) Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment under section 27, and there is no amount or sufficient amount carried forward and set on under sub-section (1) which could be utilised for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year in the manner illustrated in the Second Schedule.

(3) The principle of set on and set off as illustrated in the Third Schedule shall apply to all other cases not covered by sub-section (1) or sub section (2) for the purpose of payment of bonus under this Code.

(4) Where in any accounting year any amount has been carried forward and set on or set off under this section, then, in calculating bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest account year shall first be taken into account.

PBA

Verbatim

 

35. Adjustment of customary or interim bonus against bonus payable under the Code:Where in any accounting year, -

(a) an employer has paid any Puja Bonus or other customary bonus to employee;

or

(b) an employer has paid a part of the bonus payable under this Code to employee before the date on which such bonus becomes payable, then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Code in respect of that accounting year and the employee shall be entitled to receive only the balance.

PBA

Verbatim

 

36. Deduction of certain amounts from bonus payable under this Code:Where in any accounting year, an employee is found guilty of misconduct causing financial loss to the employer, then, it shall be lawful for the employer to deduct the amount of loss from the amount of bonus payable by him to the employee under this Code in respect of that accounting year only and the employee shall be entitled to receive the balance, if any.

PBA

Verbatim

 

37. Time limit for payment of bonus:All amounts payable to an employee by way of bonus under this Code shall be paid by transferring to the bank account of the employee by his employer and -

(a) where there is a dispute regarding payment of bonus pending before any authority such bonus shall be paid, within a month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of such dispute;

(b) in any other case, such bonus shall be paid within a period of eight months form the close of the accounting year:

Provided that the appropriate Government or such authority as the appropriate Government may specify in this behalf may, upon an application made to it by the employer and for sufficient reasons, by order, extend the said period of eight months to such further period or periods as it thinks fit; so, however, that the total period so extended shall not in any case exceed two years:

Provided if there is a dispute for payment at the higher rate, the employer shall pay 8.33% as per of the Code with in time limit.

PBA

Changes the payment mode from cash to bank transfers and adds the clause to the existing act viz.Provided if there is a dispute for payment at the higher rate, the employer shall pay 8.33% as per of the Code with in time limit.

 

38. Application of this Chapter to establishments in public sector in certain cases:(1) If in any accounting year an establishment in public sector sells any goods produced or manufactured by it or renders any services, in competition with an establishment in private sector, and the income from such sale or services, or both is not less than twenty per cent of the gross income of the establishment in public sector for that year, then, the provisions of this Chapter shall apply in relation to such establishment in public sector as they apply in relation to a like establishment in private sector.

(2) Save as otherwise provided in sub-section (1), nothing in this Chapter shall apply to the employees employed by any establishment in public sector.

PBA

Verbatim

 

39. Non- applicability of the Chapter:Nothing in this Chapter shall apply to - (i) employees employed by the Life Insurance Corporation of India;

(ii) seamen as defined in clause (42) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958);

(iii) employees registered or listed under any scheme made under the Dock Workers (Regulation of Employment) Act, 1948, (9 of 1948), and employed by registered or listed employers;

(iv) employees employed by an establishment engaged in any industry carried by or under the authority of any department of the Central Government or a State Government or a local authority.

(v) employees employed by-

(a) the Indian Red Cross Society or any other institution of a like nature (including its branches);

(b) universities and other educational institutions;

(c) institutions (including hospitals, chamber of commerce and social welfare institutions) established not for purposes of profit.

(vi) employees employed by the Reserve Bank of India;

(vii) employees employed by public sector financial institution other than a banking company, which the Central Government may, by notification, specify, having regard to -

(a) its capital structure;

(b) its objectives and the nature of its activities;

(c) the nature and extent of financial assistance or any concession given to it by the Government; and

(d) any other relevant factor;

(viii) employees employed by inland water transport establishments operating on routes passing through any other country; and

(ix) employees of any other establishment which the appropriate Government, by notification, exempts having regard to the overall benefits under any other scheme of profit sharing available in such establishments to the employees:

Provided that notwithstanding anything contained in this section, the provisions of this chapter shall apply to every other establishment in which twenty or more persons are employed or were employed on any day during an accounting year.

PBA

Nothing in this Act shall apply to--

(i)employees employed by any insurer carrying on general insurance business and the employees employed by the Life Insurance Corporation of India;

(ii) seamen as defined in clause (42) of section 3 of theMerchant Shipping Act, 1958 (44 of 1958);

(iii) employees registered or listed under any scheme made under the Dock Workers (Regulation of Employment) Act,1948 (9 of 1948), and employed by registered or listed employers;

(iv) employees employed by an establishment engaged in any industry carried on by or under the authority of any departmentof the Central Government or a State Government or a local authority;

(v) employees employed by--

(a) the Indian Red Cross Society or any other institution of a like nature (including its branches);

(b) universities and other educational institutions;

(c) institutions (including hospitals, chambers of commerce and social welfare institutions) established not for purposes of profit;

(vi) employees employed through contractors on building operations;

(viii) employees employed by the Reserve Bank of India; (ix) employees employed by--

(a) the Industrial Finance Corporation of India;

(b) any Financial Corporation established under section 3, or any Joint Financial Corporation established under section 3A, of the State Financial Corporations Act, 1951 (63 of 1951);

(c) the Deposit Insurance Corporation;

(d) the National Bank for Agriculture and Rural Development]

(e) the Unit Trust of India;

(f) the Industrial Development Bank of India;

(fa) the Small Industries Development Bank of India established under section 3 of the Small Industries Development Bank of India Act, 1989 (39 of 1989);]

(ff) the National Housing Bank;]

(g) any other financial institution [(other than a banking company)] being an establishment in public sector, which the Central Government may, by notification in the Official Gazette, specify, having regard to--

(i) its capital structure;

(ii) its objectives and the nature of its activities;

(iii) the nature and extent of financial assistance or any concession given to it by the Government; and

(iv) any other relevant factor;

(xi) employees employed by inland water transport establishments operating on routes passing through any other country.

 

Chapter V

Miscellaneous

 

40. Removal of difficulties:1) If any difficulty arises in giving effect to the provisions of this code, the Central Government may, by order, published in the official gazette, make such provision not inconsistent with the provisions of this code, as appear to be necessary

2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.

 

New insertion

 

41. Responsibility for payment of various dues:Every employer shall be responsible for the payment of all amount required to be paid under this Code to every employee employed by him and in case a person,-

(a) in a factory has been named as the manager of the factory under clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948); or

(b) other establishment is responsible to the employer for the supervision and control of the establishment;

(c) in railways (otherwise than in factories), if the employer is the railway administration and the railway administration has nominated such person in this behalf for the local area concerned, or

PBA

Verbatim

 

(d) in the case of contractor, is designated by such contractor for such payment and is directly under his charge;

 

New insertion

 

(e) in any other case, is designated by the employer as a person responsible for complying with the provisions of this Code, then the person so named, shall also be responsible for such payment

PBA

Verbatim

 

42. Payment of various undisbursed dues in case of death of employed person:(1) Subject to the other provisions of this code all amounts payable to an employed person shall if such amounts could not or cannot be paid on account of his death before payment or on account of his whereabouts not being known -

(a) be paid to the person nominated by him in this behalf in accordance with the rules made under this code; or

(b) where no such nomination has been made or where for any reasons such amounts cannot be paid to the person so nominated be deposited with the prescribed authority who shall deal with the amounts so deposited in such manner as may be prescribed.

(2) Where in accordance with the provisions of sub-section (1), all amounts payable to an employed person -

(a) are paid by the employer to the person nominated by the employer person; or

(b) are deposited by the employer with the prescribed authority, the employer shall be discharged of his liability to pay those amount.

PWA

Verbatim

 

43. Claims under the Code and procedure thereof:(1) The appropriate Government may by notification appoint one or more authorities to hear and decide the claims arising out of non-payment of wages, deduction made by employer from the wages of an employee which are not as per this Code, payment of less wages than the minimum wages, non-payment of wages for the leave period, non-payment

of over time, non-payment of equal remuneration to male, female and transgender employees as may be prescribed and non-payment of bonus.

(2) The authority appointed under sub-section (1) may order payment of compensation up to 10 times in addition to the dues involved as specified in sub- section (1) to the employee and such authority shall, before ordering compensation, have regard to the circumstances due to which the dues had remained unpaid or less paid.

(3) If an employer fails to pay the outstanding dues of an employee that are decided to be paid by the authority under sub-section (1), the authority shall issue a certificate of recovery to the Collector or District Magistrate of the District where the establishment is located who shall recover the same as arrears of land revenue and remit the same to the authority for payment to the concerned employee.

(4) Any application for claim arising out of any dues payable as specified under sub- section (1) may be filed before the authority by either the employee or any Trade Union of which the employee is a member or a Non-Government Organisation duly authorised by the employee or an Inspector appointed under this Code.

(5) Authority appointed under sub-section (1) and the appellate authority appointed under sub-section (1) of section 44, or as the case may be, the Chairperson and every Member of the Board referred to in sub-section (2) of section 44 shall have all the powers of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling the production of documents, and every such authority, appellate authority or, as the case may be, the Chairperson and every Member shall be deemed to be a Civil Court for all the purposes of section

195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).

 

Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims.- (1) The State Government may, by notification in the Official Gazette, appoint a presiding officer of any Labour Court or Industrial Tribunal, constituted under the Industrial Disputes Act, 1947 (14 of 1947) or under any corresponding law relating to the investigation and settlement of industrial disputes in force in the State or] any Commissioner for Workmen's Compensation or other officer with experience as a Judge of a Civil Court or as a stipendiary Magistrate to be the authority to hear and decide for any specified area all claims arising out of deductions from the wages, or delay in payment of the wages, of persons employed or paid in that area, including all matters incidental to such claims:

Provided that where the State Government considers it necessary so to do, it may appoint more than one authority for any specified area and may, by general or special order, provide for the distribution or allocation of work to be performed by them under this Act.

(2) Where contrary to the provisions of this Act any deduction has been made from the wages of an employed person, or any payment of wages has been delayed, such person himself, or any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf, or any Inspector under this Act, or any other person acting with the permission of the authority appointed under sub-section (1), may apply to such authority for a direction under sub-section (3):

Provided that every such application shall be presented within [twelve months] from the date on which the deduction from the wages was made or from the date on which the payment of the wages was due to be made, as the case may be:

Provided further that any application may be admitted after the said period of [twelve months] when the applicant satisfies the authority that he had sufficient cause for not making the application within such period.

(3) When any application under sub-section (2) is entertained, the authority shall hear the applicant and the employer or other person responsible for the payment of wages under section 3, or give

them an opportunity of being heard, and, after such further inquiry (if any) as may be necessary, may, without prejudice to any other penalty to which such employer or other person is liable under this Act, direct the refund to the employed person of the amount deducted, or the payment of the delayed wages, together with the payment of such compensation as the authority may think fit, not exceeding ten times the amount deducted in the former case and 2*[not exceeding twenty- five rupees in the latter, and even if the amount deducted or the delayed wages are paid before the disposal of the application, direct the payment of such compensation, as the authority may think fit, not exceeding twenty-five rupees]:

Provided that no direction for the payment of compensation shall be made in the case of delayed wages if the authority is satisfied that the delay was due to--

(a) a bona fide error or bona fide dispute as to the amount payable to the employed person, or

(b) the occurrence of an emergency, or the existence of exceptional circumstances, such that the person responsible for the payment of the wages was unable, though exercising reasonable diligence, to make prompt payment, or

(c) the failure of the employed person to apply for or accept payment.

(4) If the authority hearing an application under this section is satisfied--

(a) that the application was either malicious or vexatious, the authority may direct that a penalty not exceeding fifty rupees be paid to the employer or other person responsible for the payment of wages by the person presenting the application; or

(b) that in any case in which compensation is directed to be paid under sub-section (3), the applicant ought not to have been compelled to seek redress under this section, the authority may direct that a penalty not exceeding fifty rupees be paid to the State Government by the employer or other person responsible for the payment of wages.

(4A) Where there is any dispute as to the person or persons being the legal representative or representatives of the employer or of the employed person, the decision of the authority on such dispute shall be final.

(4B) Any inquiry under this section shall be deemed to be a judicial proceeding within the meaning of sections 193, 219 and 228 of the Indian Penal Code (45 of 1860).]

(5) Any amount directed to be paid under this section may be recovered--

(a) if the authority is a Magistrate, by the authority as if it were a fine imposed by him as Magistrate, and

(b) if the authority is not a Magistrate, by any Magistrate to whom the authority makes application in this behalf, as if it were a fine imposed by such Magistrate.

 

44. Appeal:(1) Any person aggrieved by an order passed by the authority under sub-section (2) of section 43 may prefer an appeal to the appellate authority having jurisdiction appointed by the appropriate Government, by notification, for such purpose within ninety days from the date of such order in such form accompanied with such fee as may be prescribed by the appropriate Government:

Provided that the appellate authority may entertain the appeal after ninety days if it is satisfied that the delay in filing the appeal has occurred due to sufficient cause.

(2) If the appropriate Government considers it appropriate for dispensation of justice, instead of appointing appellate authority or authorities under sub- section (1) or if such appellate authority or authorities have been appointed, dissolve such appellate authorities and establish one or more Board as provided in sub-section (3).

(3) The appropriate Government shall establish one or more Board referred to in sub-section (2) which shall consist of-

(i) a Chairperson who shall be an officer not below the rank of Director in the Government of India or equivalent having experience in dealing with labour matters;

(ii) a Member having experience in the field of Trade Unions representing workers; and

(iii) a Member having experience in employers’ association representing employers.

(4) If a Board is established after dissolving an appellate authority under sub- section (2), the appeals pending before such appellate authority shall stand transferred to such Board and the Board shall either hear an appeal so transferred de-novo or as it deems fit from the stage the appeal is transferred to it.

(5) Appellate authority referred to in sub-section (1) or, as the case may be, the Board referred to in sub-section (2) shall after hearing the parties in the appeal dispose of the appeal and endeavour shall be made to dispose of the appeal within three months.

(6) The outstanding dues under the orders of the appellate authority referred to in sub-section (1) or, as the case may be, the Board referred to in sub-section (2) shall be recovered by the authority by issuing certificate of recovery in the manner specified in sub-section (3) of section 43.

(5) The salary and other terms and conditions of service of the Chairperson and Members of the Board referred to in sub-section (2) shall be such as may be prescribed.

   

45. Single application in respect of a number of employees:(1) Subject to such rules as may be prescribed, a single application may be presented under section 46 on behalf or in respect of any number of employees employed in the employment in respect of which minimum rates of wages have been fixed and in such cases the maximum compensation which may be awarded under sub-section (2) of section 46 shall not exceed ten times the aggregate amount of the dues in excess to the dues payable or ten rupees per head as the case may be.

(2) The authority may deal with any number of separate pending applications presented under section 46 in respect of employees in the employments in respect of which minimum rates of wages have been fixed as a single application presented under sub-section (1) of that section and the provisions of that sub-section shall apply accordingly.

PWA

Verbatim

 

46. Records, Returns and Notices:(1) Every employer of an establishment to which this Code applies, shall maintain a register containing the details with regard to persons employed, muster roll, wages, and other details as prescribed by the appropriate Government and as far as possible electronically.

(2) Every employer shall display a notice on the notice board at a prominent place of the establishment containing the abstract of the code, category-wise wage rates of employees, wage period, day or date and time of payment of wages, and the name of the person responsible for payment of wages to the employees.

(3) Every employer of an establishment shall send an annual return in the prescribed form and as far as possible electronically to the authority as may be prescribed.

   

47. Appointment of Facilitators and their powers.-(1) The appropriate Government may, by notification, appoint Facilitators who shall exercise the powers conferred on them under sub-section (4) throughout the State or such geographical limits assigned to them, in relation to establishments situated in such State or geographical limits, as the case may be.

(2) The appropriate Government may lay down an inspection scheme which shall provide for generation of a web-based inspection schedule, based on self-certification, utilizing services of technical experts or agencies and complaint received and list of defaulters.

(3) Every Facilitator appointed under sub-section (1) shall be deemed to be public servant within the meaning of section 21 of the Indian Penal Code (45 0f 1860).

(4) Subject to any rules made in this behalf by the appropriate Government, a facilitator may, within the local limits for which he is appointed –

(i) (a) supply information and advice to employers and workers concerning the most effective means of complying with the provisions of this code.

(b) inspect the establishment for the purpose of inspection referred to in sub-section (2) based on inspection scheme referred to in that sub-section;

(ii) Subject to the above, the Facilitator may –

(a) examine any person who is found in any premises of the establishment and whom, the Facilitator has reasonable cause to believe, is a worker of the establishment;

(b) require any person to give any information, which is in his power to give with respect to the names and addresses of the persons;

(c) search, seize or take copies of such register, record of wages or notices or portions thereof as the Facilitator may consider relevant in respect of an offence under this Code and which the Facilitator has reason to believe has been committed by the employer;

(d) bring to the notice of the appropriate Government defects or abuses not covered by the law for the time being in force; and

(e) exercise such other powers as may be prescribed.

(5) Any person required to produce any document or to give any information required by a Facilitator under sub-section (4) shall be deemed to be legally bound to do so within the meaning of section 175 and section 176 of the Indian Penal Code (45 of1860).

(6) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), shall, so far as may be, apply to the search or seizure under sub-section (4) as they apply to the search or seizure made under the authority of a warrant issued under section 94 of the said Code.

 

Facilitators have been conferred with all the powers of Inspectors as defined in MWA and PWA

 

48. Cognizance of offences:(1) Cognizance of offences committed under this Code shall be taken on the complaint filed by an employee or a registered trade union or a recognised welfare institution or a Facilitator appointed under this Code. (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (1 of 1974), no court inferior to the Metropolitan Magistrate or Magistrate of first class shall try the offences under this code.

   

49. Penalties for offences:(1) Any employer who –

   

(a) pays to any employee less than the minimum rates of wages fixed for that employee's class of work or less than the amount due to such employee under the provisions of this Code or discriminates between male, female and trans- gender employees or vice-versa in payment of wages on ground of gender shall be punishable with fine which may extend to fifty thousand rupees:

 

Provided that if such employer having been convicted of an offence under this clause is again found guilty of similar offence under this clause, while his name is occurring on the list of defaulters, he shall, on the second or any subsequent commission of the offence under this clause be punishable with an imprisonment for a term which may extend to three months or with fine which may extend to rupees one lakh, or with both;

MWA

Any employer who--

(a) pays to any employee less than the minimum rates of wages fixed for that employee's class of work, or less than the amount due to him under the provisions of this Act, or

(b) contravenes any rule or order made under section 13, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both:

Provided that in imposing any fine for an offence under this section, the Court shall take into consideration the amount of any compensation already awarded against the accused in any proceedings taken under section 20.

 

(b) makes any deduction other than those authorised under this code from the wages to be paid to the employee, shall be punishable with fine which may extend to fifty thousand rupees:

 

Provided that if the employer having been convicted of an offence under this clause is again found guilty of similar offence under this clause, while his name is occurring on the list of defaulters, he shall, on the second and or any subsequent commission of the similar offence under this clause, be punishable with imprisonment for a term which may extend to three months or with fine which may extend to one lakh rupees or with both; or

PWA

Whoever being responsible for the payment of wages to an employed person contravenes any of the provisions of any of the following sections, namely,

section 5 except sub-section (4) thereof, section 7, section 8

except sub-section (8) thereof, section 9, section 10 except sub-section (2) thereof, and sections 11 to 13], both inclusive, shall be punishable with fine [which shall not be less than two hundred rupees but which may extend to one thousand rupees.

(2) Whoever contravenes the provisions of section 4, sub- section (4) of section 5, section 6, sub-section (8) of section 8, sub-section (2) of section 10] or section 25 shall be punishable with fine which may extend to five hundred rupees].

 

(c) fails in making payment of bonus to the employee as per his eligibility and entitlement shall be punishable with fine which may extend to fifty thousand rupees:

 

Provided that if such employer having been convicted of an offence under this clause again found guilty of similar offence under this clause, while his name is occurring on the list of defaulters, he shall, on the second and any subsequent commission of the offence under this clause, be punishable with imprisonment for a term which may extend to three months or with fine which may extend to one lakh rupees, or with both; or

PBA

If any person--

(a) contravenes any of the provisions of this Act or any rule made thereunder; or

(b) to whom a direction is given or a requisition is made under this Act fails to comply with the direction or requisition,

he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

 

(d) contravenes any other provision contained in this Code or any rule made or order issued thereunder shall be punishable with fine which may extend to twenty thousand rupees:

 

Provided that if such employer having been convicted of an offence under this clause again found guilty of similar offence under this clause, while his name is occurring on the list of defaulters, he shall, on the second and any subsequent commission of the offence under this clause, be punishable with imprisonment for a term which may extend to one month or with fine which may extend to forty thousand rupees, or with both.

 

(2) For the offences of non or improper maintenance of records in his establishment, the employer shall be punishable by fine which may be extended to ten thousand rupees.

(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Facilitator shall, before initiation of prosecution proceedings, give an opportunity, to the employer to comply with the provisions of this Code by way of a written direction, which shall lay down a time period for such compliance and if the employer complies with the direction within such period, the Facilitator shall not initiate such prosecution proceedings.

PWA

(3) Whoever being required under this Act to maintain any records or registers or to furnish any information or return--

(a) fails to maintain such register or record; or

(b) wilfully refuses or without lawful excuse neglects to furnish such information or return; or

(c) wilfully furnishes or causes to be furnished any information or return which he knows to be false; or

(d) refuses to answer or wilfully gives a false answer to any question necessary for obtaining any information required to be furnished under this Act;

shall, for each such offence, be punishable with fine 2*[which shall not be less than two hundred rupees but which may extend to one thousand rupees].

(4) Whoever--

(a) wilfully obstructs an Inspector in the discharge of his duties under this Act; or

(b) refuses or wilfully neglects to afford an Inspector any reasonable facility for making any entry, inspection, examination, supervision, or inquiry authorised by or under this Act in relation to any railway, factory or [industrial or other establishment]; or

(c) wilfully refuses to produce on the demand of an Inspector any register or other document kept in pursuance of this Act; or

(d) prevents or attempts to prevent or does anything which he has any reason to believe is likely to prevent any person from appearing before or being examined by an Inspector acting in pursuance of his duties under this Act;

shall be punishable with fine [which shall not be less than two hundred rupees but which may extend to one thousand rupees]

(5) If any person who has been convicted of any offence punishable under this Act is again guilty of an offence involving contravention of the same provision, he shall be punishable on a subsequent conviction with imprisonment for a term [which shall not be less than one month but which may extend to six months and with fine which shall not be less than five hundred rupees but which may extend to three thousand rupees]:

Provided that for the purpose of this sub-section, no cognizance shall be taken of any conviction made more than two years before the date on which the commission of the offence which is being punished came to the knowledge of the Inspector.

(6) If any person fails or wilfully neglects to pay the wages of any employed person by the date fixed by the authority in this behalf, he shall, without prejudice to any other action that may be taken against him, be punishable with an additional fine which may extend to [one hundred rupees] for each day for which such failure or neglect continues.]

 

50. Compounding of offences:(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974),on the application of the employer concerned, any offence under this code shall be compounded, by such officer being a gazetted officer of the appropriate Government in such manner and on payment of such amount to such government as may be prescribed and if the employer does not agree to pay such amount for composition of the offence, then, the proceedings shall be initiated against such employer in accordance with law.

(2) The offence referred to in sub-section (1) may be compounded before or pending the trial of the offence and when the offence is compounded during the trial of the offence, the officer compounding the offence under sub-section (1) shall file a report in the court in which the trial of the offence is pending and the court shall on filing of such report discharge the accused with whom the offence has been compounded and such composition shall have the effect of an acquittal of the accused.

(3) No offence under this section shall be compounded if the accused has previously been convicted by a Court for committing same offence.

(4) No offence under this code shall be compounded, except as provided under this section.

 

New insertion

 

51. Bar of suits:No Court shall entertain any suit for the recovery of minimum wages, any deduction from wages, discrimination in wages and payment of bonus in so far as the sum so claimed –

(a) forms the subject of claims under Section 46;

(b) has formed the subject of a direction under this Code; or (c) has been adjudged in any proceeding under this Code; (d) could have been recovered under this Code.

MWA

Verbatim

 

52. Protection of action taken in good faith:No suit, prosecution or any other legal proceeding shall lie against the appropriate government or any officer of such government for anything which is in good faith done or intended to be done under this Code.

PWA

Verbatim

 

53. Burden of proof:Where a claim has been filed on account of non - payment of remuneration or bonus or less payment of wages or bonus or on account of making deductions not authorised by this Code from the wages of an employee, the burden to prove that the above mentioned dues have been paid shall be on the employer.

 

New insertion

 

54. Contracting out:Any contract or agreement whereby an employee forgoes his right to any amount due under this Code or foregoes his right to bonus shall be void ab initio.

PBA

PWA

Verbatim

 

55. Offences by companies:(1) If the person committing an offence under this Code is a company, every person who, at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

PROVIDED that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Code has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation : For the purposes of this section,-

(a) "company" means anybody corporate and includes a firm or other association of individuals; and

(b) "director" in relation to a firm means a partner in the firm.

PBA

MWA

Verbatim

 

56. Effect of laws and agreements inconsistent with the Code:Subject to the provisions of section 38 the provisions of this Code shall have effect notwithstanding anything inconsistent contained in any other law for the time being in force or in the terms of any award, agreement, settlement or contract of service.

 

New insertion

 

57. Saving:Nothing contained in this Code shall be deemed to affect the provisions of the Coal Mines Provident Fund and Bonus Schemes Act, 1948 (46 of 1948), or of any scheme made thereunder.

PBA

Verbatim

 

58. Power of the Central Government to make rules:(1) The Central Government may, by notification, make rules for carrying out the provisions of this Code.

(2) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid both Houses agree in making any modification in the rule or both Houses agree that rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or amendment shall be without prejudice to the validity of anything previously done under that rule.

 

New insertion

 

59. Repeal and savings- (1) The Payment of Wages Act, 1936 (4 of 1936), the Minimum Wages Act, 1948 (11 of 1998), the Payment of Bonus Act, 1965 (21 of 1965) and the Equal Remuneration Act, 1976 (25 0f 1976) are hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the enactments so repealed (including any notification, nomination, appointment, order or direction made thereunder) shall be deemed to have been done or taken under the corresponding provisions of this code and shall be in force to the extent they are not contrary to the provisions of this code till they are repealed by the Central government.

(3) Without prejudice to the provisions of sub-section (2), the provisions of section 6 of the General Clause Act, 1897 (10 of 1897) shall apply to the repeal of such enactments.

 

New insertion

 
    

Minimum Wages Act dropped clauses – 6, 8, 11, 18, 19, 22, 25, 26, 27, 28, 29, 30, 31.

 

Payment of Bonus Act dropped clauses – 12, 13, 14, 21, 22, 23, 24, 26, 28, 30, 31, 34, 35, 36, 38, 39, 40.

 

Payment of Wages Act dropped clauses – 13, 17,18, 21, 24, 26.